Ripple, the company behind the XRP token, has filed for a US national bank licence as part of efforts to bring its RLUSD stablecoin under state and federal regulation.
Ripple (XRP) climbed more than 4% on news that Ripple has filed for a US national bank licence. The company confirmed it has applied for a national bank charter with the Office of the Comptroller of the Currency (OCC).
If approved, Ripple’s application would bring its RLUSD stablecoin under both federal and New York state regulation. This dual layer of compliance and oversight is uncommon in the digital asset space and would set a new benchmark for regulatory standards.
Brad Garlinghouse, Ripple CEO, announced the licence application in a post on his X account. He stated that the filing represented “a new (and unique!) benchmark for trust in the stablecoin market.”
He added: “Ripple always has and will continue to build trusted, battle-tested and secure infrastructure. In a $250B+ market, RLUSD stands out for putting regulation first, setting the standard that institutions expect.”
Along with its OCC filing, Ripple has also applied for a Federal Reserve master account, through its subsidiary Standard Custody & Trust Company. This would allow Ripple to hold RLUSD reserves directly with the central bank and issue tokens beyond standard banking hours.
What is the RLUSD stablecoin?
RLUSD is Ripple’s US dollar-backed stablecoin, first launched in late 2024. It is designed to maintain a 1:1 peg with the US dollar and is currently regulated by the New York Department of Financial Services.
The stablecoin currently has a market cap of around $469 million. While impressive, this remains significantly lower than the value of rivals like Tether (USDT) and USDC. Through this latest application, Ripple’s emphasis on transparency and compliance could make RLUSD more attractive to institutional investors.
How has the market reacted to Ripple’s filing?
The market has reacted positively to Ripple’s announcement, with XRP moving above $2.25. In a bullish movement, the XRP price rallied to peak at $2.28. This momentum reflects growing confidence among traders, who see Ripple’s regulatory progress as a sign of long-term strength and deeper alignment with traditional finance.
While the US Congress works on legislation requiring bank charters for stablecoin issuers, Ripple is acting quickly. The firm is moving ahead of its rivals by seeking both state and federal oversight, which could encourage institutional capital and accelerate the adoption of RLUSD.
Ripple’s announcement follows Circle’s application
Ripple’s decision to get a banking licence follows Circle’s own application for a national bank charter. Circle, the issuer of USDC, which is the industry’s second-largest stablecoin, has applied to the OCC bid to hold and manage its stablecoin reserves under federal oversight.
This latest move by both firms comes as the US Senate officially passed a stablecoin regulating bill. Known as the GENIUS Act, it sets out standards for issuing US dollar-pegged tokens. It includes a requirement that larger stablecoin issuers come under the oversight of the OCC.
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